Key Points
XT pledge lending provides ultra-low interest rate funding support for arbitrage. All operations are completed within the platform, without the need to transfer coins, which is lower risk and more secure.
By replacing traditional leveraged trading and using fixed-rate pledged loans instead of high-interest margin financing, interest costs can be directly reduced by more than 90%.
By taking advantage of perpetual contract funding rate arbitrage, you can obtain stable daily passive income by simply borrowing BTC or ETH for short selling.
All three strategies are based on the internal functions of the XT platform. They are simple and safe, and do not require jumping platforms or switching wallets. They are especially suitable for novices to try.
By reasonably setting the loan period, paying attention to the funding rate, and repaying the loan in advance, you can further improve arbitrage income and risk control efficiency.
If you can increase your crypto income without frequent trading and taking too much risk, would you like to try it?
This is the charm of arbitrage - it is not a game of skyrocketing or plummeting prices, but a way to make steady profits through differences in funding rates or market mechanisms.
Many people mistakenly believe that the threshold for arbitrage is very high, requiring multiple exchanges, cross-platform arbitrage, and real-time monitoring, but in fact, XTs pledge lending service has simplified arbitrage operations to complete within a platform. You can borrow BTC or ETH at a low interest rate, and then complete arbitrage operations within XTs spot, leverage, perpetual contract and other markets.
Currently, the fixed annualized interest rate for XT pledge lending is very competitive: BTC is as low as 1.23%, and ETH is only 1.50%. In the past, these arbitrage opportunities were mostly in the hands of institutions, but now ordinary users can also easily get started.
This article will introduce you to three arbitrage methods with low risk, clear operation, and suitable for both beginners and advanced users. More importantly: your funds stay in XT throughout the process, without having to transfer them back and forth, which is more efficient and safer.
Whether you are new to crypto arbitrage or a trader looking to expand your game, these three strategies can be applied immediately and start your journey to passive income from BTC and ETH.
Table of contents
What is XT pledge lending? Borrow BTC and ETH at ultra-low interest rates
Strategy 1: Use XT pledge lending instead of leveraged financing, saving 90% of the cost
Strategy 2: Earn daily income through BTC perpetual contract arbitrage
Strategy 3: Use XT pledge lending to capture ETH perpetual contract funding arbitrage opportunities
Advanced Tips: How to Maximize Your Arbitrage Profits
What is XT pledge lending? Borrow BTC and ETH at ultra-low interest rates
XT pledge lending is a convenient financial service launched by XT.com , which supports users to borrow popular currencies such as Bitcoin (BTC) , Ethereum (ETH) and USDT directly on the platform. You can temporarily release the value of funds without selling the coins in your hands, which not only retains long-term positions but also obtains instant liquidity, which is very suitable for arbitrage, position adjustment or short-term operations.
How to use XT pledge lending? Get started in 4 easy steps:
1. Pledged collateral assets
Choose BTC , ETH or other mainstream tokens supported by the platform as collateral to lock your loan amount.
2. Select loan currency and term
Choose to borrow BTC , ETH or USDT as needed, and set the term (flexible borrowing, 7 days, 30 days optional).
3. Funds arrive in seconds
The borrowed coins will be directly transferred to your spot account. There is no need to wait or transfer money. You can use them immediately after borrowing.
4. Repay at any time without charge
You can repay the loan in advance at any time within the term without any additional handling fee, and the mortgaged assets will be released immediately after repayment.
XT latest lending rate (updated on July 16, 2025)
Four major advantages of XT pledge lending
– Ultra-low interest rates and extremely cost-effective
The interest rate is much lower than that of traditional leveraged trading or DeFi lending, leaving more room for arbitrage and short-term operations.
Transparent interest rates, calculated hourly
All rates are fixed, and you can borrow for as long as you want. There are no hidden fees, and the interest cost is clear at a glance.
Flexible repayment, no penalty clauses
There is no additional fee for early repayment, which is particularly suitable for short-term arbitrage and low-risk strategies.
The assets are all on the XT platform, safe and convenient
There is no need to transfer coins back and forth. The mortgaged and borrowed coins are all in the XT internal account, which is safer and easier to manage.
In XT lending, the pledge rate can be as high as 80%. Once the warning line is triggered, the system will automatically remind you to add margin; if you do not replenish your position in time and the pledge rate continues to rise, the order will be forced to close (which is what we often call a margin call) when it reaches the forced liquidation line. This mechanism is actually to protect the safety of your assets, and at the same time, it also allows strategies such as arbitrage to be safely executed in a lower-risk, low-cost environment.
Strategy 1: Use XT pledge lending instead of leveraged financing, saving 90% of the cost
Leveraged trading on XT allows you to quickly establish long or short positions, and is a common tool for many short-term traders. However, this convenience also hides an invisible killer - high interest costs. The daily interest rate of leveraged lending is usually around 0.2%, and the annualized interest rate is close to 73%. If the position is held for a long time, the profit can easily be eaten up by the interest.
Why use XT collateralized lending instead of traditional leverage?
XT pledge lending is a very practical alternative. Compared with traditional leveraged lending, the fixed annual interest rate of XT lending is much lower (currently 6% annualized for 7-day USDT lending and 7.5% annualized for 30 days), allowing you to obtain the same leverage exposure at a lower cost, greatly improving the overall rate of return while reducing the potential risks caused by compound interest.
Operation process at a glance: teach you how to do it step by step
1. Borrow USDT through XT pledge lending
Choose a fixed loan term (7 days 6% annualized, or 30 days 7.5% annualized) and flexibly choose according to your trading plan.
2. Buy BTC or ETH in the XT spot market
Using borrowed USDT to buy BTC or ETH is equivalent to establishing a long position similar to traditional leveraged trading.
XT.com BTC/USDT leverage trading pair
3. Hold + Close + Repay
After reaching your profit target, sell BTC or ETH back to USDT , repay the XT loan principal and interest, and the rest is your net profit - and the interest cost is much lower than traditional leverage!
Comparison of actual costs (taking a 30-day position and $10,000 as an example)
Why choose XT pledge lending?
Lower costs:
Interest expenses have dropped by 90%, leaving more room for arbitrage and position adjustments, and profits are naturally more substantial.
Interest transparency:
Fixed annualized + hourly interest, no hidden fees, and no need to worry about the interest rolling up.
Risk control is clear and transparent:
The highest pledge rate can reach 80%. Once the warning line is triggered, it will automatically remind you to add margin. If the forced liquidation line is reached, the system will execute forced liquidation to ensure the safety of borrowers and the platform.
Suitable for various strategies:
Whether it is swing arbitrage, low-frequency trading, or short- to medium-term holdings (more than 2-3 days), you can find a more secure and low-cost execution method in XT lending.
Strategy 2: Earn daily income through BTC perpetual contract arbitrage
For users who do not want to sell their altcoins but want to earn a stable passive income, BTC perpetual contract funding rate arbitrage is a very good choice. Through XT pledge lending , you can borrow BTC at a low interest rate and earn a stable daily income in XTs BTC coin-based perpetual contract market.
How does BTC perpetual contract arbitrage make money?
When the market is bullish, long users usually have to pay funding rates to short users on a regular basis. You only need to borrow BTC through XT and then open a short position to receive these funding fees regularly. During the whole process, you can continue to make money without paying attention to the rise and fall of the market as long as the funding rate is positive.
Follow these steps to get started:
1. Stake your altcoin or stablecoin:
Pledge mainstream altcoins such as ETH , SOL , XRP , or stablecoins such as USDT and USDC on XT.com to obtain BTC loan quota.
2. Borrow BTC through XT pledge lending :
Choose a suitable loan period. Currently, the annualized fixed interest rate for BTC for 30 days is 1.55%.
3. Open a short order:
Sell the borrowed BTC immediately in XT’s BTC-based perpetual contract market to establish a short position.
XT.com BTC/USD coin-margined perpetual contract trading pair
4. Funding Fee:
As long as the funding rate is positive, you will receive passive income every 8 hours.
5. Close position + repay + take profit:
When you are ready to end the strategy, close your BTC position, repay the loan, and what remains is the net profit of the funding you earned minus the interest and handling fees.
Actual profit example:
Calculation instructions: Daily net income = (F × P × Q) − (I × P × Q); Total net income = [(F − I) × P × Q × T] − handling fee
F = daily funding rate (e.g. 0.01% = 0.0001)
P = BTC current price (e.g. $118,000)
Q = Position quantity (e.g. 1 BTC)
I = Daily borrowing rate (APR ÷ 365, e.g. 1.55% ÷ 365 ≈ 0.0000425)
T = number of days to borrow
Fee = round trip fee (e.g. ~$ 118)
The core advantages of BTC perpetual arbitrage:
Market Neutral Strategy:
Don’t be afraid of market fluctuations, as long as the funding rate is positive, you can continue to make money.
Passive income sources:
As long as you keep an empty position every day, you can receive coins steadily without frequent transactions.
Extremely low cost:
XT’s BTC borrowing rate is much lower than that of external platforms, making the strategy more cost-effective.
Great for altcoin holders:
You don’t have to sell your own coins to earn arbitrage income by staking and borrowing BTC.
Strategy 3: Use XT pledge lending to capture ETH perpetual contract funding arbitrage opportunities
This strategy is similar to the BTC arbitrage method mentioned above, but the ETH currency-based perpetual contract market is usually more volatile, so timing and monitoring of funding rates are particularly important. Through XTs low-interest ETH lending service, you can continue to collect daily returns in a market with a bullish trend and positive funding rates.
How does ETH arbitrage work?
Just like BTC perpetual contracts, when the ETH/USD coin-margin contract market is bullish, long users will regularly pay funding fees to short users. You only need to borrow ETH through XT and open a short order to collect this part of the income every day.
The steps are very simple, just follow them:
1. Use altcoins or stablecoins as collateral:
Pledge mainstream altcoins such as SOL , XRP , BTC , or stablecoins such as USDT and USDC on XT.com to obtain loan limits.
2. Borrow ETH through XT pledge lending :
Choose a suitable loan term. XT currently provides ETH lending services with a minimum annualized interest rate of 1.5% (7 days/30 days optional).
3. Open a short order:
Sell the borrowed ETH directly in XT’s ETH-based perpetual contract market to establish a short position.
XT.com ETH/USD coin-margined perpetual contract trading pair
4. Funding Fee:
As long as the market remains bullish, you can earn funding fees from long users every day.
5. Close positions, repay loans, and take profits:
When you decide to end your arbitrage, close your ETH position and repay the money. After deducting transaction fees and interest, what remains is your net profit.
Daily earnings example:
Note 1: Assumptions
Position size: 10 ETH
ETH Current Price : $3,100
Daily funding rate: 0.01% (0.0001)
Transaction fees are not included
7-day loan means returning and borrowing again after 7 days, rolling 4 times to simulate a 30-day cycle
Note 2: Calculation formula
Daily net income = (F × P × Q) − (I × P × Q)
Total net income = [(F − I) × P × Q × T] − Fees
in:
F = daily funding rate (e.g. 0.01% = 0.0001)
P = ETH current price (e.g. $3,100)
Q = Position quantity (e.g. 10 ETH)
I = Daily borrowing rate (APR ÷ 365, e.g. 1.5% ÷ 365 ≈ 0.0000411)
T = number of days to borrow money (e.g. 7 or 30)
Fee = total transaction fee (e.g. bilateral transaction fee for 10 ETH is about $120)
Advantages of ETH perpetual arbitrage strategy:
Daily income can be reused:
As long as the market conditions are bullish, you can receive profits every day.
Low operating cost:
The ETH borrowing interest rate is extremely low, which makes the arbitrage space larger.
For intermediate users:
Suitable for advanced traders who are sensitive to market fluctuations and can monitor funding fees regularly.
Advanced Tips: How to Maximize Your Arbitrage Profits
Want to really make the arbitrage strategy mentioned above work? You must master these tips! They can help you reduce costs, increase returns, and control risks at the same time.
Loan term options
– If you plan to complete arbitrage in a short period of time, give priority to using 7-day loans, which have the lowest interest expenses.
– If you plan to hold an arbitrage position for a long time, it is more appropriate to choose a 30-day loan to lock in a lower fixed interest rate.
Mortgage asset recommendations
Choosing currencies with higher collateral rates such as ETH and SOL can increase the loan amount.
Diversify your collateral portfolio and reduce the risk of fluctuations in a single currency.
Funding fee monitoring
Funding is updated every 8 hours, so it is recommended to check regularly to seize opportunities for positive returns.
Set funding fee reminders to respond to market fluctuations in a timely manner.
Key points of risk control
Control the mortgage ratio, try to keep it within a safe range, and avoid approaching the forced liquidation line.
Set a stop loss for your contract position to prevent major losses from sudden market conditions.
Repayment strategy
After the arbitrage is completed, it is recommended to repay the loan as soon as possible, which can effectively reduce interest costs and increase net income.
What to do next?
XTs pledge lending function allows traders of different experience levels to easily start stable and secure passive income. Whether you are a novice or an experienced user, through these novice-friendly, low-risk arbitrage strategies, you can maximize your capital efficiency without transferring assets or operating multiple platforms.
The current annualized interest rate of BTC is as low as 1.23%, and ETH is only 1.5%. XT.com provides a very competitive financing solution in the industry. Combined with the operating skills introduced in this article, you can now take advantage of the price and capital spread within the platform to start your arbitrage income.
Go to the XT staking and lending page now, select the currency and term you want to borrow, and put these strategies into practice to put your assets into motion!
FAQ: About XT Pledge Lending and Arbitrage
Q: Can newbies also use XT pledge lending for arbitrage?
A: Of course. XTs pledge lending function is simple to operate, has low interest rates, and flexible repayments, making it very suitable for beginners to try low-risk arbitrage. It is recommended to start with a small amount, familiarize yourself with the process, and then gradually expand the scale of operations.
Q: What are the potential risks of using cryptocurrency lending for arbitrage?
A: There are two main risks: first, the price fluctuation of the collateral currency may cause the position to approach the forced liquidation line, and second, the funding rate of the perpetual contract may change unfavorably. It is recommended to maintain a healthy collateral ratio, pay attention to market fluctuations at any time, and adjust the position in time to control risks.
Q: Can I repay my XT pledge loan in advance?
A: Yes, but it depends on the type of loan. Current loans support repayment at any time, with no penalty interest; fixed-term loans (such as 7 days, 30 days) may be subject to penalty interest if repaid in advance. It is recommended to choose a suitable term according to your needs.
Q: Does it require high trading skills to do these arbitrage strategies?
A: No. The several arbitrage methods introduced in the article are very clear and easy to understand. Just follow the steps. At the same time, the XT platform itself is very user-friendly and suitable for novices. However, it is recommended that you continue to pay attention to market trends. With a certain amount of basic knowledge, the income will be more stable.
